Proposed Rule2022-13713
Direct Investment Surveys: BE-13, Survey of New Foreign Direct Investment in the United States
Primary source
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Published
June 28, 2022
Issuing agencies
Commerce DepartmentEconomic Analysis Bureau
Abstract
This proposed rule would amend regulations of the Department of Commerce's Bureau of Economic Analysis (BEA) to set forth the reporting requirements for the BE-13, Survey of New Foreign Direct Investment in the United States ("BE-13 survey"). The BE-13 survey collects information on the acquisition or establishment of U.S. business enterprises by foreign investors, and information on expansions by existing U.S. affiliates of foreign companies. The data collected through the survey are used to measure the amount of new foreign direct investment in the United States and ensure complete coverage of BEA's other foreign direct investment statistics. BEA proposes one change to the reporting requirements of the survey that will reduce respondent burden, simplify reporting, and increase the efficiency of the data collection. This mandatory BE-13 survey is required from persons subject to the reporting requirements, whether or not they are contacted by BEA.
Full Text
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<title>Federal Register, Volume 87 Issue 123 (Tuesday, June 28, 2022)</title>
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[Federal Register Volume 87, Number 123 (Tuesday, June 28, 2022)]
[Proposed Rules]
[Pages 38311-38313]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-13713]
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DEPARTMENT OF COMMERCE
Bureau of Economic Analysis
15 CFR Part 801
[Docket No. 220616-0135]
RIN 0691-AA92
Direct Investment Surveys: BE-13, Survey of New Foreign Direct
Investment in the United States
AGENCY: Bureau of Economic Analysis, Commerce.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This proposed rule would amend regulations of the Department
of Commerce's Bureau of Economic Analysis (BEA) to set forth the
reporting requirements for the BE-13, Survey of New Foreign Direct
Investment in the United States (``BE-13 survey''). The BE-13 survey
collects information on the acquisition or establishment of U.S.
business enterprises by foreign investors, and information on
expansions by existing U.S. affiliates of foreign companies. The data
collected through the survey are used to measure the amount of new
foreign direct investment in the United States and ensure complete
coverage of BEA's other foreign direct investment statistics. BEA
proposes one change to the reporting requirements of the survey that
will reduce respondent burden, simplify reporting, and increase the
efficiency of the data collection. This mandatory BE-13 survey is
required from persons subject to the reporting requirements, whether or
not they are contacted by BEA.
DATES: Comments on this proposed rule will receive consideration if
submitted in writing on or before August 29, 2022.
ADDRESSES: You may submit comments, identified by RIN 0691-AA92, and
referencing the agency name (Bureau of Economic Analysis), by any of
the following methods:
<bullet> Federal eRulemaking Portal: <a href="https://www.regulations.gov">https://www.regulations.gov</a>.
Follow the instructions for submitting comments. For Keyword or ID,
enter ``EAB-2022-0001.''
<bullet> Email: <a href="/cdn-cgi/l/email-protection#590b303a382b3d36771530343c2a193b3c38773e362f"><span class="__cf_email__" data-cfemail="1a4873797b687e75345673777f695a787f7b347d756c">[email protected]</span></a>.
<bullet> Mail: Direct Transactions and Positions Branch, U.S.
Department of Commerce, Bureau of Economic Analysis, BE-49NI,
Washington, DC 20233.
<bullet> Hand Delivery/Courier: Direct Transactions and Positions
Branch, U.S. Department of Commerce, Bureau of Economic Analysis, BE-
49NI, 4600 Silver Hill Road, Suitland, MD 20746.
Written comments regarding the burden-hour estimates or other
aspects of the collection-of-information requirements contained in the
proposed rule should be sent to BEA through any of the methods above
and also to the Office of Management and Budget (OMB) by submitting
comments at <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>. Find this particular
information collection by selecting ``Currently under Review'' or by
using the search function and entering the title of the collection.
Public Inspection: All comments received are a part of the public
record and will generally be posted to <a href="https://www.regulations.gov">https://www.regulations.gov</a>
without change. Personal identifying information voluntarily submitted
by the commenter may be publicly accessible. Do not submit confidential
business information or otherwise sensitive or protected information.
BEA will accept anonymous comments (enter N/A in required fields if you
wish to remain anonymous).
FOR FURTHER INFORMATION CONTACT: Ricardo Limes, Chief, Direct
Transactions and Positions Branch (BE-49NI), Bureau of Economic
Analysis, U.S. Department of Commerce, 4600 Silver Hill Road,
Washington, DC 20233; email <a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="6b3902080a190f04450702060e182b090e0a450c041d">[email protected]</a> or 301-278-9659.
SUPPLEMENTARY INFORMATION: The BE-13, Survey of New Foreign Direct
Investment in the United States, is a mandatory survey conducted by BEA
under the authority of the International Investment and Trade in
Services Survey Act (22 U.S.C. 3101-3108).
The purpose of the BE-13 survey is to collect data on the
acquisition or establishment of U.S. business enterprises by foreign
investors and the expansion of existing U.S. affiliates of foreign
companies to establish a new facility where business is conducted. The
data collected on the survey are used to measure the amount and
economic significance of new foreign direct investment in the United
States and assess its impact on the U.S. economy. Foreign direct
investment in the United States is defined as the ownership or control,
directly or indirectly, by one foreign person (foreign parent) of 10
percent or more of the voting securities of an incorporated U.S.
business enterprise, or an equivalent interest of an unincorporated
U.S. business enterprise, including a branch.
This proposed rule would amend 15 CFR 801.7 to set forth the
reporting requirements for the BE-13, Survey of New Foreign Direct
Investment in the United States. Under this proposed rule, persons
subject to the reporting requirements of the BE-13, Survey of New
Foreign Direct Investment in the United States, would be required to
respond, whether or not they are contacted by BEA.
The Department of Commerce, as part of its continuing effort to
reduce paperwork and respondent burden, invites the general public and
other Federal agencies to comment on proposed and/or continuing
information collections, as required by the Paperwork Reduction Act of
1995, 44 U.S.C. 3501-3520 (PRA).
Description of Changes
The proposed change amends the regulations for the BE-13 survey.
Specifically, BEA proposes to change the reporting requirements of form
BE-13E, Fiscal Year End Cost Update for Projects Originally Reported on
Forms BE-13B and BE-13D. The form collects updated cost information for
greenfield investments--i.e., establishments or expansions of U.S.
businesses by foreign investors filed on BE-13B or BE-13D forms,
respectively--and is required to be filed annually until the
establishment or expansion of the U.S. business enterprise is complete.
BEA proposes to limit the filing requirement of the BE-13E form to
three years after the year the investment is initiated. BEA has found
that this timeframe would be sufficient to collect the vast majority of
the changes to total planned expenditures of greenfield investments and
provide data users with insightful statistics on the ultimate cost of
these investments. The proposed change would reduce respondent burden
and the BEA resources needed to continue to collect and process these
[[Page 38312]]
updates, allowing BEA to focus resources on the featured statistics for
more recent periods.
BEA will describe any proposed changes to the information collected
through the survey (including the addition, deletion, and/or
modification of existing questions and definitions) in a public notice
and will solicit comments as part of the requirements of the Paperwork
Reduction Act (PRA). Any changes to reporting requirements or
significant expansions in scope of the surveys would be conducted by
rulemaking.
Executive Order 12866
This proposed rule has been determined to be not significant for
purposes of E.O. 12866.
Executive Order 13132
This proposed rule does not contain policies with Federalism
implications sufficient to warrant preparation of a Federalism
assessment under E.O. 13132.
Paperwork Reduction Act
This proposed rule contains a collection-of-information requirement
subject to review and approval by OMB under the PRA. The requirement
will be submitted to OMB for approval as a reinstatement, with change,
of a previously approved collection under OMB control number 0608-0035.
Notwithstanding any other provisions of the law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply with, a collection of information subject to the
requirements of the PRA unless that collection displays a currently
valid OMB control number.
The BE-13 survey, as proposed, is expected to result in the filing
of approximately 3,027 reports from U.S. affiliates each year. The
respondent burden for this collection of information is expected to
vary because of differences in company structure, size, and complexity,
but is estimated to average 1.1 hours per response. The burden includes
time for reviewing instructions, searching existing data sources,
gathering and maintaining the data needed, and completing and reviewing
the collection of information. Thus, the total respondent burden for
this survey is estimated at 3,027 hours, compared to 2,547 hours for
the previous BE-13 survey estimate. The increase in burden hours is due
to the increase in the overall number of respondents expected to file,
partially offset by a reduction in the number of BE-13E forms expected
to be filed.
We are soliciting public comments to permit the Department of
Commerce/Bureau of Economic Analysis to: (a) Evaluate whether the
proposed information collection is necessary for the proper functions
of the Department, including whether the information will have
practical utility; (b) Evaluate the accuracy of our estimate of the
time and cost burden for this proposed collection, including the
validity of the methodology and assumptions used; (c) Evaluate ways to
enhance the quality, utility, and clarity of the information to be
collected; and (d) Minimize the reporting burden on those who are to
respond, including the use of automated collection techniques or other
forms of information technology.
Written comments regarding the burden-hour estimates or other
aspects of the collection-of-information requirements contained in the
proposed rule should be sent to both BEA and OMB following the
instructions given in the ADDRESSES section above.
Regulatory Flexibility Act
The Chief Counsel for Regulation, Department of Commerce, has
certified to the Chief Counsel for Advocacy, Small Business
Administration, under the provisions of the Regulatory Flexibility Act
(RFA), 5 U.S.C. 605(b), that this proposed rulemaking, if adopted, will
not have a significant economic impact on a substantial number of small
entities.
Most of the U.S. business enterprises that are required to file the
survey are units of multinational enterprises. For the few small
businesses that are foreign-owned, BEA has attempted to keep burden to
a minimum by asking only those questions that are considered essential
and for which answers are likely to be readily available from the
existing records of the business. The amount of information required to
be reported by each U.S. business enterprise is determined by the type
and cost of the transaction. When the cost of the acquisition,
establishment, or expansion is less than $3 million, the U.S. business
enterprise will only be required to report selected items on the BE-13
Claim for Exemption. The burden for this form is an average of 15
minutes.
Because relatively few small businesses are required to file the
survey and because those that are impacted are subject to only a
minimal recordkeeping burden, the Chief Counsel for Regulation
certifies that this proposed rule will not have a significant economic
impact on a substantial number of small entities.
List of Subjects in 15 CFR Part 801
Economic statistics, Foreign investment in the United States,
International transactions, Penalties, Reporting and record keeping
requirements.
Paul W. Farello,
Associate Director of International Economics, Bureau of Economic
Analysis.
For reasons set forth in the preamble, BEA proposes to amend 15 CFR
part 801 as follows:
PART 801--SURVEY OF INTERNATIONAL TRADE IN SERVICES BETWEEN U.S.
AND FOREIGN PERSONS AND SURVEYS OF DIRECT INVESTMENT
0
1. The authority citation for 15 CFR part 801 continues to read as
follows:
Authority: 5 U.S.C. 301; 15 U.S.C. 4908; 22 U.S.C. 3101-3108;
E.O. 11961 (3 CFR, 1977 Comp., p. 86), as amended by E.O. 12318 (3
CFR, 1981 Comp. p. 173); and E.O. 12518 (3 CFR, 1985 Comp. p. 348).
0
2. Revise Sec. 801.7 to read as follows:
Sec. 801.7 Rules and regulations for the BE-13, Survey of New
Foreign Direct Investment in the United States.
The BE-13, Survey of New Foreign Direct Investment in the United
States, is conducted to collect data on the acquisition or
establishment of U.S. business enterprises by foreign investors and the
expansion of existing U.S. affiliates of foreign companies to establish
new facilities where business is conducted. Foreign direct investment
is defined as the ownership or control by one foreign person (foreign
parent) of 10 percent or more of the voting securities of an
incorporated U.S. business enterprise, or an equivalent interest of an
unincorporated U.S. business enterprise, including a branch. BEA will
describe the proposed information collection in a public notice and
will solicit comments according to the requirements of the Paperwork
Reduction Act (44 U.S.C. 3501-3520). All legal authorities, provisions,
definitions, and requirements contained in Sec. Sec. 801.1 through
801.2 and Sec. Sec. 801.4 through 801.6 are applicable to this survey.
Specific additional rules and regulations for the BE-13 survey are
given in paragraphs (a) through (d) of this section. More detailed
instructions are given on the report forms and instructions.
(a) Response required. A response is required from persons subject
to the reporting requirements of the BE-13, Survey of New Foreign
Direct Investment in the United States, contained herein, whether or
not they
[[Page 38313]]
are contacted by BEA. Also, a person, or their agent, who is contacted
by BEA about reporting in this survey, either by sending them a report
form or by written inquiry, must respond in writing pursuant to this
section. This may be accomplished by filing the properly completed BE-
13 report (BE-13A, BE-13B, BE-13D, BE-13E, or BE-13 Claim for
Exemption).
(b) Who must report. A BE-13 report is required of any U.S.
business enterprise, except certain private funds, see exception in
item (b.4.), in which:
(1) A foreign direct investment in the United States relationship
is created;
(2) An existing U.S. affiliate of a foreign parent establishes a
new U.S. business enterprise, expands its U.S. operations, or acquires
a U.S. business enterprise, or;
(3) BEA requests a cost update (Form BE-13E) for a U.S. business
enterprise that previously filed Form BE-13B or BE-13D.
(4) Certain private funds are exempt from reporting on the BE-13
survey. If a U.S. business enterprise is a private fund and does not
own, directly or indirectly, 10 percent or more of another business
enterprise that is not also a private fund or a holding company, it is
not required to file any BE-13 report except to indicate exemption from
the survey if contacted by BEA.
(c) Forms to be filed. Depending on the type of investment
transaction, U.S. affiliates would report their information on one of
five forms--BE-13A, BE-13B, BE-13D, BE-13E, or BE-13 Claim for
Exemption.
(1) Form BE-13A--Report for a U.S. business enterprise when a
foreign entity acquires a voting interest (directly, or indirectly
through an existing U.S. affiliate) in that U.S. business enterprise
including segments, operating units, or real estate; and
(i) The total cost of the acquisition is greater than $3 million;
and
(ii) By this acquisition, the foreign entity now owns at least 10
percent of the voting interest (directly, or indirectly through an
existing U.S. affiliate) in the acquired U.S. business enterprise.
(2) Form BE-13B--Report for a U.S. business enterprise when it is
established by a foreign entity or by an existing U.S. affiliate of a
foreign parent; and
(i) The expected total cost to establish the new U.S. business
enterprise is greater than $3 million; and
(ii) The foreign entity owns at least 10 percent of the voting
interest (directly, or indirectly through an existing U.S. affiliate)
in the new U.S. business enterprise.
(3) Form BE-13D--Report for an existing U.S. affiliate of a foreign
parent when it expands its operations to include a new facility where
business is conducted and the expected total cost of the expansion is
greater than $3 million.
(4) Form BE-13E--Report for a U.S. business enterprise that
previously filed Form BE-13B or BE-13D. Form BE-13E collects updated
cost information and will be collected annually for three years after
the year of the establishment or expansion of the U.S. business
enterprise.
(5) Form BE-13 Claim for Exemption--Report for a U.S. business
enterprise that:
(i) was contacted by BEA but does not meet the requirements for
filing Forms BE-13A, BE-13B, or BE-13D; or
(ii) whether or not contacted by BEA, met all requirements for
filing Forms BE-13A, BE-13B, or BE-13D except the $3 million reporting
threshold.
(d) Due date. The BE-13 forms are due no later than 45 calendar
days after the acquisition is completed, the new U.S. business
enterprise is established, the expansion is begun, the cost update is
requested, or a notification letter is received from BEA by a U.S.
business enterprise that does not meet the filing requirements for the
survey.
[FR Doc. 2022-13713 Filed 6-27-22; 8:45 am]
BILLING CODE 3510-06-P
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